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A bond has a $1,000 par value, 12 years to maturity, and pays a coupon of 5.5% per year, semiannually. You expect the bond's yield

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A bond has a $1,000 par value, 12 years to maturity, and pays a coupon of 5.5% per year, semiannually. You expect the bond's yield to maturity to decrease to 4.5% per year in three years. If you buy the bond today for $978.50 and sell it in three years, what is the annual return on your investment? A) 8.32% B) 8.74% C) 8.87% D) 8.98% E) 8.52% th

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